The NetCo/ServCo Transformation for European Telcos

This IDC Market Perspective details strategies that European CSPs have been using to navigate a challenging telco landscape, marked by financial pressures and the need to innovate in a highly competitive market. To remain viable and competitive, European CSPs are exploring structural transformations, particularly a NetCo/ServCo split, to unlock value by focusing on core competencies and attracting new investments. This strategic shift aims at enhancing operational efficiency, fostering greater market competition, and meeting evolving customer demands by separating network operations (NetCo) from customer-facing services (ServCo)."Embracing NetCo/ServCo separation could redefine telco competitiveness, unlocking unprecedented value in the rapidly evolving European telecommunications landscape," said Ahmad Latif Ali, associate vice president, IDC.